U.S. Small Business Trends Q1 2024

Posted under: SMB
Date: 2024-02-22
U.S. Small Business Trends Q1 2024

The National Federation of Independent Business, a group of around 300,000 small U.S. businesses, publishes a monthly report called "Small Business Economic Trends." The report includes an "optimism index" where members rate their outlook on employment, capital outlays, and economic improvement. The index, which is compiled into the Small Business Optimism Index, dropped two points in January 2024, marking the 25th consecutive month below the 50-year average of 98, indicating ongoing economic concerns among small business owners. The NFIB survey revealed that 21% of US small business owners ranked labor quality as their most important issue, followed by inflation at 20%. In January 2024, 14% of surveyed owners planned to increase employment, down two points from December. The survey also revealed that in January, the number of "lower" respondents was 30% higher than "higher," indicating a decrease in net profits compared to the previous year.